Locus FS secures major funding to expand U.S. biomanufacturing, accelerate commercialization, and scale high-performance bio-based additives across key industrial sectors.
Locus Fermentation Solutions (Locus FS), a biotechnology innovator headquartered in the United States and known for manufacturing advanced bio-based, performance-enhancing additives, has announced the successful completion of an oversubscribed $20 million convertible note fundraising round. The round, which values the company at approximately $100 million, was led by Hudson Bay Capital. The investment structure also leaves room to further expand the amount raised if needed. With this infusion of capital, Locus FS intends to strengthen its U.S. biomanufacturing footprint, advance its commercialization plans, and accelerate product development across four central markets: oil and gas, mining, agriculture, and industrial/consumer packaged goods (CPG) formulations.
The new note round brings Locus FS’s total fundraising for the year to more than $40 million, marking another milestone in the company’s rapid growth trajectory. Company executives also participated in the round, highlighting internal confidence in Locus FS’s strategic direction. Commenting on the development, CEO John Uhran emphasized that the investment demonstrates significant market belief in the company’s mission and capabilities. He noted that after recording strong double-digit growth and onboarding more than 50 new customers in 2025 alone, Locus FS is positioned to scale its expertise in designing and producing cleaner, more effective alternatives to traditional chemical solutions. These advancements are driven by the company’s proprietary production platforms and glycolipid technologies.
As the U.S. shifts more focus toward domestic production and resilient supply chains, Locus FS distinguishes itself as the only American producer of glycolipid biosurfactants with TSCA clearance for commercial-scale volumes. These ingredients are palm-free, non-GMO, highly biodegradable, and exhibit significantly lower toxicity compared to petroleum-derived surfactants—while still delivering exceptional performance. Their sustainability profile and high functionality make them suitable for replacing chemical surfactants across a range of industries.
The newly obtained investment will be directed toward several strategic priorities: broadening domestic fermentation and downstream processing capacities; accelerating customer acquisition and commercial expansion across primary markets; fast-tracking new product introductions; applying the company’s extensive IP portfolio to spark innovation; and deploying advanced digital tools and data analytics to sharpen operational performance.
Matt Russell of Hudson Bay Capital remarked that global industries are increasingly seeking sustainability without compromising performance. He stated that Locus FS’s glycolipids and microbial solutions meet this demand by offering environmentally responsible ingredients that outperform many conventional formulations and are already demonstrating strong, scalable results across applications.
Locus FS has already established credibility in each of its target sectors. In the oil and gas industry, its glycolipid-enhanced solutions help operators increase production while adhering to tight environmental rules. Mining companies leveraging Locus biosurfactants have seen improved mineral recovery and more efficient leaching and flotation processes. In agriculture, the company’s biological and glycolipid-based inputs have consistently delivered measurable yield improvements and stronger returns for farmers across eight major crops. Within industrial and consumer product formulations, Locus FS ingredients help reduce surfactant usage, elevate performance, and support ESG and clean-label requirements.
Backed by the latest capital injection, Locus FS plans to advance its leadership position by broadening distribution networks, developing additional bio-based product lines, and collaborating with partners seeking high-performance alternatives to legacy chemical formulations.
